A recent press report said that the country’s largest housing finance company HDFC has reported a net profit of Rs 971crore for the quarter ended September 2011, an increase of 20% compared to the corresponding period last year.
The company has recorded a sound loan growth with advances growing 20% after factoring in loan sales. Net profits were higher than expected largely on account of profit on sale of investments of Rs. 89 crore most of which was due to receipt of proceeds of its stake sale in Intelenet, a BPO company that HDFC had promoted.
According to reports the corporation’s loan book stood at Rs. 1, 26,992 crore as against Rs. 1, 06,287 crore as at September 30, 2010. Loans sold during the preceding twelve months amounted to Rs 4,989 crore. The growth in the loan book inclusive of loans sold is 24%. Net interest margins loans over the cost of borrowings-shrunk from 2.32% on September 10 to 2.29% on September 2011.
Speaking to TOI, Keki Mistry, vice chairman and CEO, said that it was likely that RBI would hike rates in its policy in October. However, it would not necessarily lead to a corresponding rise in home loan rates. “If we can absorb an increase in costs we will not necessarily increase lending rates,” he said.